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USADF Launches Project Funds in Malawi

United States Chargé d’Affaires Kevin Sullivan and Secretary for Trade and Private Sector Development Nerbert Nyirenda on April 7, 2009, launched a development initiative under the United States African Development Foundation (USADF) at a ceremony in Zomba, Malawi’s former capital. 
USADF signed a bi-lateral agreement with the Government of Malawi in May 2008 and an MOU in October 2008, publically announcing their intentions to fund economic development projects in Malawi.  The MOU partnership is for five years with a total pledge of US $7.5 million or MK 1.03 billion. 
Under the partnership, USADF will fund grassroots groups and provide selected grantees with implementation assistance through the National Association of Business Women (NABW).

In his remarks, Sullivan said the partnership will help to promote development, diversify the economy, and increase participation of groups in trade and investment activities.  He said Malawi has tremendous opportunities for innovation and new investment in small enterprises and community-owned activities.  He stated that “these are the engines that drive an economy, and these are specifically the areas that the USADF targets.”
Sullivan added that the bilateral partnership between Malawi and the United States is undergoing unprecedented growth with the potential for substantial increases and new progress.  He cited the Millennium Challenge Corporation programs as a possible area of significant new aid that will help Malawi to improve its power and transportation sectors. 
He also noted the U.S. Government’s plans to expand support for Malawi’s HIV/AIDS programs over the next year as “we establish a new framework agreement that could see the doubling of our assistance in this area.”

USADF Regional Program Director Kim Ward said, “USADF is proud to partner with the Government of Malawi and NABW to serve the people of Malawi.  Since working with the Government of Malawi, USADF has made it a priority to launch programming as soon as possible to serve the needs of the most marginalized and under-served people in Malawi.  The Foundation looks forward to meeting the needs of the Malawian people and supporting their self-help economic development efforts.”

Ministry of Trade and Private Sector Development Principal Secretary Nerbert Nyirenda lauded the U.S. Government for the continued support it renders to Malawi.  He said cooperation between the USADF and the Malawi Government will lead to the provision of financial and technical assistance to small and medium enterprises to enable them to supply high quality goods in both the domestic and export markets. Nyirenda reiterated the Malawi Government’s commitment to the program saying “we have undertaken to contribute fifty per cent to the program under this matching grant agreement, which further demonstrates the importance that the Malawi Government attaches to enterprise development as an instrument of economic empowerment for its marginalized citizens.” 
Nyirenda added that under the initiative, a number of enterprise activities will be jointly funded by the USADF and the Malawi Government in the amount of US$1.5 million.  The areas of assistance will include enhancement of capacity to develop business plans, marketing strategies, financial systems and procurement of processing and packaging equipment, among others.  “This is an important intervention that will improve the production capability of the small and medium sector in this country and it will enhance value addition of locally available raw materials.” He said.  

The first USADF grantee in Malawi, Chinangwa, Mbatata, Roots and Tubers Enterprises (CMRTE) farmers group, has a membership of 2,000 members, 80% of whom are women.  The Group grows and processes cassava to generate income, reduce poverty and increase the standard of living for members. The $95,000 grant agreement that the group signed during the launch, will be obligated over 18 months.

CMRTE coordinating Chairperson Chrissie Katundu thanked the USADF for the support that she said will help the group to establish a central office, develop financial and business systems, hire staff, and purchase processing equipment and planting materials.
The United States African Development Foundation is a United States Government agency dedicated to expanding access to economic opportunity in Africa.  Currently, USADF operates in 20 African countries.  Over the past 25 years, USADF has funded nearly 1,500 projects representing in excess of $150 million in support of African enterprises and local African communities.